Penguin Solutions (NASDAQ:PENG) Trading 9.7% Higher – Here’s What Happened

Penguin Solutions, Inc. (NASDAQ:PENG)’s share price rose 9.7% during trading on Thursday . The company traded as high as $52.56 and last traded at $52.90. Approximately 599,131 shares traded hands during trading, a decline of 74% from the average daily volume of 2,323,735 shares. The stock had previously closed at $48.24.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on PENG. Citizens Jmp raised their price objective on Penguin Solutions from $65.00 to $85.00 and gave the company a “market outperform” rating in a research note on Wednesday, July 8th. Stifel Nicolaus boosted their target price on Penguin Solutions from $66.00 to $75.00 and gave the stock a “buy” rating in a research note on Wednesday, July 8th. Wall Street Zen cut shares of Penguin Solutions from a “strong-buy” rating to a “buy” rating in a report on Sunday, July 26th. Needham & Company LLC raised their price target on shares of Penguin Solutions from $60.00 to $80.00 and gave the company a “buy” rating in a research note on Wednesday, July 8th. Finally, Rosenblatt Securities raised their price target on shares of Penguin Solutions from $65.00 to $75.00 and gave the company a “buy” rating in a research note on Monday, July 6th. Six research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $63.33.

Penguin Solutions Stock Up 1.4%

The company has a market capitalization of $2.73 billion, a price-to-earnings ratio of 37.80 and a beta of 2.86. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.54 and a quick ratio of 1.10. The firm’s fifty day moving average price is $54.84 and its 200-day moving average price is $46.13.

Penguin Solutions (NASDAQ:PENG) last released its quarterly earnings data on Tuesday, July 7th. The company reported $0.84 earnings per share for the quarter, beating the consensus estimate of $0.63 by $0.21. Penguin Solutions had a return on equity of 28.23% and a net margin of 6.44%.The company had revenue of $478.71 million for the quarter, compared to the consensus estimate of $407.47 million. During the same quarter last year, the business posted $0.52 EPS. Sell-side analysts expect that Penguin Solutions, Inc. will post 2.08 earnings per share for the current fiscal year.

Insider Activity at Penguin Solutions

In related news, SVP Joseph Clark sold 1,327 shares of Penguin Solutions stock in a transaction that occurred on Thursday, July 23rd. The shares were sold at an average price of $57.47, for a total transaction of $76,262.69. Following the sale, the senior vice president directly owned 63,056 shares in the company, valued at $3,623,828.32. This trade represents a 2.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anne Kuykendall sold 4,000 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $50.58, for a total transaction of $202,320.00. Following the sale, the senior vice president directly owned 112,994 shares in the company, valued at $5,715,236.52. The trade was a 3.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On Penguin Solutions

A number of hedge funds have recently modified their holdings of PENG. BlackRock Inc. acquired a new stake in Penguin Solutions in the second quarter valued at $581,658,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in Penguin Solutions during the 2nd quarter worth about $150,192,000. Paradigm Capital Management Inc. NY bought a new stake in shares of Penguin Solutions in the 2nd quarter valued at about $52,135,000. William Blair Investment Management LLC bought a new stake in shares of Penguin Solutions in the 2nd quarter valued at about $34,207,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Penguin Solutions in the second quarter valued at about $22,503,000.

About Penguin Solutions

Penguin Solutions, Inc (NASDAQ: PENG) provides technology solutions for data centers, high-performance computing, artificial intelligence, and intelligent edge applications. The company helps organizations design, deploy, and manage specialized computing environments, including systems used for demanding workloads such as scientific research, machine learning, and enterprise applications.

Its offerings include accelerated computing platforms, high-performance servers and clusters, software and services for managing complex computing infrastructure, and memory and storage products.